GSA awards $5.66M for steel desks, with 2 bidders indicating moderate competition

Contract Overview

Contract Amount: $5,663 ($5.7K)

Contractor: Norex Group, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-06-02

Contract Duration: 60 days

Daily Burn Rate: $94/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STEEL DESK

Place of Performance

Location: VALENCIA, LOS ANGELES County, CALIFORNIA, 91381

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $5,662.65 to NOREX GROUP, LLC for work described as: STEEL DESK Key points: 1. Value appears reasonable given the contract type and duration. 2. Competition was moderate, with two bids received. 3. No immediate risk indicators identified in the award data. 4. Contract supports general office furniture needs. 5. Positioned within the office furniture and equipment sector. 6. Awarded as a purchase order, suggesting a streamlined process.

Value Assessment

Rating: good

The contract value of $5.66 million for steel desks over a 60-day period appears reasonable. The firm fixed-price structure helps manage cost certainty. Benchmarking against similar GSA furniture procurements would provide a more precise value assessment, but the award amount does not immediately suggest overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. Receiving two bids suggests some level of competition, but it is not full and open. The limited competition may have influenced the final pricing, potentially leading to a higher price than if more vendors had participated.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible price achievable through a broader bidding process.

Public Impact

Federal agencies requiring office furniture will benefit from the supply of steel desks. Services delivered include the provision of essential office equipment. The geographic impact is likely nationwide, supporting federal offices across the US. Workforce implications are minimal, primarily related to manufacturing and delivery of the desks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to less favorable pricing for the government.
Reliance on a single awardee for a specific product could pose supply chain risks if not managed.

Positive Signals

Firm fixed-price contract provides cost certainty.
Purchase order award suggests efficient procurement process.
Awarded by the General Services Administration, a reputable contracting agency.

Sector Analysis

The office furniture sector is a significant component of government procurement, supporting the operational needs of federal agencies. This contract for steel desks falls within the broader category of office equipment and supplies. Comparable spending benchmarks for office furniture vary widely based on item type, quantity, and specific agency requirements, but GSA's role suggests adherence to established procurement standards.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting plan explicitly mentioned. The awardee, NOREX GROUP, LLC, is not identified as a small business in this context. This means opportunities for small business participation may be limited unless they are direct suppliers to the prime contractor.

Oversight & Accountability

Oversight is provided by the General Services Administration (GSA), which manages federal procurement. Accountability is ensured through the firm fixed-price contract terms and the purchase order mechanism. Transparency is facilitated by the availability of contract award data through public sources. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

GSA Schedule 71 II Part A - Furniture
Office Furniture Procurement
Federal Supply Schedule (FSS) Contracts

Risk Flags

Limited competition may impact price optimization.
Contract duration is relatively short (60 days).

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,662.65 to NOREX GROUP, LLC. STEEL DESK

Who is the contractor on this award?

The obligated recipient is NOREX GROUP, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $5,662.65.

What is the period of performance?

Start: 2026-04-03. End: 2026-06-02.

What is the typical price range for steel desks procured by the federal government?

The average price for steel desks procured by the federal government can vary significantly based on size, features, durability, and quantity. While specific data for this $5.66 million contract is not detailed enough to break down per-unit costs, GSA Schedule 71 II Part A, which covers furniture, often lists desks ranging from a few hundred dollars for basic models to over a thousand dollars for executive or specialized units. Factors like bulk discounts, delivery, and installation services also influence the final price. Without more granular data on the specific desk model and quantity, a precise benchmark is difficult, but the contract's total value suggests a substantial number of units or higher-end models.

How does the competition level of two bidders compare to typical GSA furniture procurements?

A competition level of two bidders, as seen in this award, is not uncommon for procurements conducted under Simplified Acquisition Procedures (SAP), which are designed for smaller dollar value purchases. However, for larger contracts or those on GSA Schedules with broader reach, competition often involves more bidders. GSA aims for maximum practicable competition. While two bidders indicate some market interest, it is less competitive than a full and open solicitation which might attract five or more bids. This level of competition can sometimes result in prices that are not as aggressively negotiated as they might be with a larger pool of offerors.

What are the potential risks associated with a firm fixed-price contract for furniture?

Firm fixed-price (FFP) contracts are generally favored for reducing cost uncertainty for the government. The primary risk for the government in an FFP contract is that the contractor may deliver a product of lower quality than anticipated if they focus solely on meeting the minimum specifications to maximize profit. For furniture, this could mean using less durable materials or compromising on finish. Conversely, the risk for the contractor is that unforeseen cost increases in materials or labor could reduce their profit margin or lead to losses. In this case, the government's risk is mitigated by GSA's oversight and the potential for future contract performance evaluations.

What is NOREX GROUP, LLC's track record with federal contracts, particularly for office furniture?

Information regarding NOREX GROUP, LLC's specific track record with federal contracts, especially for office furniture, is not detailed in the provided data snippet. A comprehensive analysis would require accessing federal procurement databases like FPDS or SAM.gov to review their past performance, contract types, dollar values, and agency clients. Without this historical data, it's difficult to assess their experience, reliability, and past performance quality in delivering similar goods or services to the government.

How does the $5.66 million award compare to overall federal spending on office furniture?

The $5.66 million award for steel desks represents a fraction of the total federal spending on office furniture, which can amount to hundreds of millions or even billions of dollars annually across all agencies. Federal agencies procure a vast array of furniture items, including desks, chairs, tables, filing cabinets, and modular systems. This specific contract addresses a particular need for steel desks, likely supporting a specific agency or set of agencies. While significant for this particular procurement, it is one component within the larger ecosystem of federal furniture acquisition.

Industry Classification

NAICS: Manufacturing › Cutlery and Handtool Manufacturing › Saw Blade and Handtool Manufacturing

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26839 PEPPERTREE DR, VALENCIA, CA, 91381

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,663

Exercised Options: $5,663

Current Obligation: $5,663

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline